Hedge funds may have just weeks left to make good money from the long Hong Kong dollar carry trade.Local interest rates, which have remained stubbornly high relative to those in the US, will fall at a faster pace once a measure of the city’s liquidity pool exceeds HK$100 billion (US$12.9 billion), according to Bank of America. At HK$94.7 billion from Wednesday, that threshold is soon approaching. The result would be a narrowing of the Hong Kong dollar’s yield advantage over the US dollar, which…
Source : South China Morning Post
Read more…Countdown begins to the window closing on this bullish Hong Kong dollar trade as interest rate gap with US markets narrows
